Under that agreement, UK insurers are committed to offering existing customers universal flood insurance at reasonable rates, as long as the Government invests in flood defences.

Thousands of homes could be uninsurable unless a deal is struck, but negotiations are still ongoing.

The Government believes the Water Bill would be a good place to insert last-minute legislation when an agreement is finally made.

The Bill will also introduce competition into the water market for the first time. It will allow businesses to choose from a range of different water companies, rather than having to buy from the supplier for their region.

This move could be a precursor to greater choice for households about where they get their water from, like there is in the energy sector.

Water bills have risen by almost two-thirds over the last decade, currently sitting at £388 per year.